JP Morgan axes Bear's private client team in London
JP Morgan is shutting down Bear Stearn's London-based private client services team, and last week informed the 30-strong team it would wind down the business between now and the end of June.
The US investment bank has been gradually cutting back Bear Stearns' operations and headcount since it bought its stricken rival in a bailout supported by the US Federal Reserve in March.
The news contradicts a letter sent from JP Morgan to Bear Stearns' private clients on March 24, which spoke of the "deep commitment of JP Morgan Chase to the Bear Stearns private clients business."
On senior banker affected by the decision said: "It came as a huge shock; as far as we were concerned the New York office were happy with our performance and were considering integration. We were told last Thursday the business would be wound down and we were given a transition letter on Friday. We've been given until June to send clients away."
He said their US counterparts would not be affected.
A banking source close to the situation said job cuts at Bear Stearns, which employs 14,000 people, are likely to exceed 10,000.
Bear Stearns and JP Morgan did not return calls yesterday.
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